Ministry of Health Annual Report for 2014-15

Ministry of HealthDrug Plan and Extended Benefits Branch

Annual Report for 2014-15

saskatchewan.ca

Contents

Drug Plan and Extended Benefits Branch MISSION STATEMENT .................................................................................................. 3

Drug Plan

Highlights for 2014-15 ..................................................................................................... 4 Program Objectives......................................................................................................... 5 Supporting Information .................................................................................................... 6

Supplementary Health and Family Health Benefits

Program Objective ........................................................................................................ 19 Highlights for 2014-15 ................................................................................................... 19 Supporting Information .................................................................................................. 19

Saskatchewan Aids to Independent Living (SAIL)

Program Objective ........................................................................................................ 23 Highlights for 2014-15 ................................................................................................... 23 Supporting Information .................................................................................................. 24

Tables Table 1 Types of Drug Plan Coverage ................................................................................ 6 Table 2 Total Beneficiary and Drug Plan Payments .......................................................... 10 Table 3 Distribution of Prescription Drug Plan Costs ........................................................ 11 Table 4 Prescription Drug Utilization Trend by Age of Discrete Beneficiary ...................... 12 Table 5 Prescription Cost to Families ............................................................................... 13 Table 6 Supplementary Health Program and Family Health Benefits Payments ............... 19 Table 7 Historical Costs of Supplementary Health Program and Family Health Benefits

Payments ............................................................................................................ 20 Table 8 Caseloads and SAIL Payments ........................................................................... 24 Table 9 Units of Equipment Issued ................................................................................... 27

Charts Chart 1 Prescription Cost to Families as a % of Total Approved Prescription Cost ........... 14 Chart 2 Supplementary Health Program and Family Health Benefits Payments by

Program Area ...................................................................................................... 22 Chart 3 SAIL Payments by Program Area......................................................................... 28

Appendices Appendix 1 Drug Plan History ........................................................................................... 29 Appendix 2 History of Deductibles .................................................................................... 32 Appendix 3 Pharmacy Claims Processing ........................................................................ 33 Appendix 4 Supplementary Health and Family Health Benefits Program History .............. 34 Appendix 5 Saskatchewan Aids to Independent Living (SAIL) Program History ............... 35

Drug Plan and Extended Benefits Branch 3

Drug Plan and Extended Benefits Branch

MISSION STATEMENT Drug Plan and Extended Benefits Branch promotes citizen-centred service through the provision of drug plan and extended health benefits to eligible residents by:

• promoting rational and appropriate use of drug therapies and extended benefits;

• ensuring the long term viability of benefits provided by pursuing better value strategies such as low cost alternative policies, product listing agreements, standing offer contracts, generic drug pricing strategies and maximum allowable cost policies; and,

• providing quality and timely information to the public and various stakeholders regarding policies, benefit assessment and program utilization.

In 2014-15, the Drug Plan and Extended Health Benefits supported the Ministry’s key strategic focus areas by pursuing the following activities:

Better Value

• In February 2015, Saskatchewan took a lead role in coordinating a price tier confirmation process that will result in significant generic drug savings. This initiative streamlined the implementation of the pan-Canadian Pharmaceutical Alliance Generic Tiered Pricing Framework.

• In April 2014, as a result of the pan-Canadian Pharmaceutical Alliance Generic Price Initiative, Canadian provinces and territories reduced the price of another four high volume molecules to 18% of the equivalent brand name drug, which brings the total to ten molecules since April 1, 2013.

Better Care

• Effective April 2014, the scope of the Saskatchewan Medication Assessment Program (SMAP) was expanded to include eligible individuals living in personal care homes, approved private service homes, and group homes for Annual Medication Assessments and Follow-up Patient Assessments.

Better Health • Ongoing engagement in evidence-based national drug initiatives including the

Common Drug Review and the pan-Canadian Oncology Drug Review.

Drug Plan

4 Drug Plan 4

Highlights for 2014-15 • Drug claims processed for Formulary and Exception Drug Status drugs:

processed 12.6 million prescriptions from April 1, 2014 to March 31, 2015

provided benefits in the amount of $307.0 million

total average cost per prescription was $44.33 (includes drug acquisition, mark-up, dispensing fee and compounding fee)

• 53.1% of beneficiaries that purchased a prescription received a benefit from one of the Drug Plan programs.

• The Seniors’ Drug Plan: 120,514 seniors received benefits in the amount of $75.9 million

assisted, on average with 67.5% of the total prescription costs

• The Special Support Program: 93,970 individuals received benefits in the amount of $135.8 million


• The Children’s Drug Plan: 66,618 children received benefits in the amount of $6.9 million


• The Supplementary Health (Social Assistance) Program: 44,751 individuals received benefits in the amount of $45.5 million

assisted on average with 98.6% of the total prescription costs

• Palliative Care Program: terminally ill patients covered under the Palliative Care Program received 132,801

prescriptions at no charge

the Drug Plan payment for Palliative Care totalled $6.8 million

Drug Plan

5 Drug Plan 5

Program Objectives Objective 1 – Provide coverage to Saskatchewan residents for quality

pharmaceutical products of proven therapeutic effectiveness • The Drug Plan establishes the Saskatchewan Formulary which is an approved list of

quality pharmaceutical products of proven therapeutic effectiveness. The process for review and approval of Formulary Drugs can be found on the Formulary website http://formulary.drugplan.health.gov.sk.ca.

• At March 31, 2015, there were 5,437 Drug Identification Numbers (DINs)1 listed on the Saskatchewan Formulary.

• 4,041 were formulary DINS; and • 1,396 were Exception Drug Status (EDS) DINs (see page 16 for a description of

EDS).

Objective 2 – Reduce the direct cost of prescription drugs for Saskatchewan residents

• The Drug Plan provides a number of coverage programs based on financial need, medical condition and other criteria.

• The coverage programs specifically target the young, seniors and those households with high drug costs relative to their incomes. Programs also recognize the high drug costs associated with certain diseases and conditions.

• In 2014-15, the Drug Plan paid 54.7% of the $560.9 million eligible drug costs. The programs are detailed in the following pages.

1 A DIN is a computer-generated eight digit number assigned by Health Canada to a drug product prior to being marketed in Canada. It uniquely identifies all drug products sold in a dosage form in Canada and is located on the label of prescription and over-the-counter drug products that have been evaluated and authorized for sale in Canada.

http://formulary.drugplan.health.gov.sk.ca/

Drug Plan

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Supporting Information Table 1 Types of Drug Plan Coverage

April 2014 - March 20152010-11 2011-12 2012-13 2013-14 2014-15

Supplementary Health (Social Assistance) Actual Beneficiaries 43,580 43,460 44,970 43,698 44,751 Total Drug Benefits Paid (Millions) $37.9 $40.1 $41.3 $42.7 $45.5

Number of Prescriptions 814,541 854,941 910,347 904,228 958,348

Special Beneficiaries Actual Beneficiaries 5,500 5,303 5,439 5,488 7,046 Total Drug Benefits Paid (Millions) $19.2 $19.7 $18.9 $20.0 $20.3


Palliative Care Actual Beneficiaries 2,982 3,060 3,183 3,335 3,437 Total Drug Benefits Paid (Millions) $5.6 $5.6 $5.7 $6.4 $6.8


Special Support Actual Beneficiaries 99,309 98,790 97,013 92,896 93,970 Total Drug Benefits Paid (Millions) $113.7 $115.8 $125.0 $127.4 $135.8

Number of Prescriptions 3,273,998 3,372,804 3,650,423 3,491,895 3,606,823

Income Supplement Actual Beneficiaries 14,764 15,099 16,551 17,172 16,261 Total Drug Benefits Paid (Millions) $3.1 $3.6 $4.8 $4.9 $4.7


Family Health Benefits Actual Beneficiaries 24,915 23,314 22,766 22,034 21,086 Total Drug Benefits Paid (Millions) $4.2 $4.0 $3.8 $3.7 $3.7


Emergency Assistance Actual Beneficiaries 344 358 275 307 315 Total Drug Benefits Paid (Millions) $0.1 $0.1 $0.1 $0.1 $0.2

Number of Prescriptions 1,045 1,040 870 992 1,113

Seniors' Drug Plan Actual Beneficiaries 121,507 123,256 117,254 118,786 120,514 Total Drug Benefits Paid (Millions) $104.6 $96.8 $68.4 $73.7 $75.9


Children's Drug Plan Actual Beneficiaries 62,475 61,822 54,035 61,331 66,618 Total Drug Benefits Paid (Millions) $5.9 $6.1 $5.5 $6.2 $6.9


Other 1

Actual Beneficiaries 2 30,373 104,858 119,011 147,363 162,294 Total Drug Benefits Paid (Millions) $3.7 $4.7 $5.1 $6.5 $7.2


Actual Beneficiaries are the number of total beneficiaries who received part or all of their drug cost paid by the Drug Plan. Note: Beneficiaries may appear in more than one category if they had prescriptions paid under more than one coverage.1 Includes Special Fees, Standard Beneficiaries and Special Support (100% co-pay).2 Number of Actual Beneficiaries are increasing due to expanded prescribing authority for Saskatchewan Pharmacists (see page 17).

Drug Plan

7 Drug Plan 7

Types of Drug Plan Coverage

1. Supplementary Health (Social Assistance) Program Residents eligible to receive benefits through the Supplementary Health Program are entitled to Drug Plan benefits at a reduced charge, or at no charge depending on their level of coverage. Deductibles are waived for these beneficiaries.

a. Plan One

Plan One beneficiaries 18 years or older are entitled to receive insulin, oral hypoglycemics, injectable vitamin B12, allergenic extracts, oral contraceptives and some products used in megavitamin therapy at no charge. These beneficiaries pay a reduced charge, to a maximum of $2.00, for all Formulary and approved Exception Drug Status drugs.

Dependents under 18 years of age are entitled to receive the above benefits at no charge.

b. Plan Two Beneficiaries receiving Plan Two coverage are entitled to receive the same benefits as Plan One patients, but at no charge.

Plan One beneficiaries requiring several Formulary drugs on a regular basis can be considered for “Plan Two” drug coverage. Plan Two drug coverage may be initiated by contacting the Drug Plan. The request can be made by the patient or a health professional (e.g. physician, social worker).

c. Plan Three Plan Three beneficiaries are entitled to receive all Formulary drugs at no charge.

Plan Three beneficiaries are residents receiving supplementary assistance who live in Special-Care homes licensed under The Housing and Special-Care Homes Act, Approved Homes licensed under The Mental Health Act, wards of the province and inmates of provincial correctional institutions.

2. Special Beneficiaries

Special Beneficiaries include persons approved for coverage under the Paraplegic Program, Cystic Fibrosis Program, Chronic End-Stage Renal Disease Program, and users of certain no-charge high cost drugs, depending on their coverage. These beneficiaries may be entitled to receive certain physician prescribed over-the-counter drugs, Exception Drug Status drugs, or all prescribed Formulary drugs at no charge under the Drug Plan.

3. Palliative Care

Persons in late stages of terminal illness are entitled to receive at no cost:

• regular Formulary drugs; • Exception Drug Status drugs where prior approval has been granted; • some commonly prescribed laxatives and select other medications required for

end of life care.

Drug Plan

8 Drug Plan 8

4. Special Support The Special Support program helps those families whose drug costs are high in relation to their income. If the annual drug costs exceed 3.4% of the family adjusted income (income after adjusting for the number of dependents), the family is eligible for Special Support benefits. Residents must apply for the Special Support Program, as the Drug Plan does not have access to the required income information. If a family is eligible for Special Support, the family and the Drug Plan share the prescription cost. The family co-payment is calculated using drug costs and adjusted family income.

5. Income Supplement Single seniors and senior families receiving the Seniors’ Income Plan (SIP) or receiving the federal Guaranteed Income Supplement (GIS) and residing in a nursing home have a $200 annual deductible with a 35% co-payment thereafter. Other single seniors and senior families receiving GIS have a $400 annual deductible with a 35% co-payment thereafter. Seniors are encouraged to apply for Special Support or the Seniors’ Drug Plan to see if they qualify for enhanced coverage.

6. Family Health Benefits Families are eligible for the Family Health Benefits Program if they meet the standards of an income test administered by the Canada Revenue Agency, or are in receipt of benefits from Saskatchewan Employment Supplement (SES) or the Saskatchewan Rental Housing Supplement (SRHS).

Comprehensive Supplementary Health Benefits are available to children under the age of 18 who qualify (dental, optical, Formulary drugs, medical supplies and appliances and ambulance services).

Partial benefits are available for adults in qualifying families (eye examinations, chiropractic treatments, $100 semi-annual family Drug Plan deductible with a 35% consumer co-payment thereafter).

7. Emergency Assistance Residents requiring immediate treatment with benefit prescription drugs and unable to pay their share of the cost, may access a one-time emergency assistance. The level of assistance provided will be in accordance with their ability to pay. They are then required to submit a completed “special support application” to the Drug Plan in order to receive future assistance.

Emergency assistance may only be requested by a pharmacist on the resident’s behalf.

Drug Plan

9 Drug Plan 9

8. Seniors’ Drug Plan

Under the Seniors’ Drug Plan, eligible seniors 65 years and older pay up to $20 per prescription for drugs listed on the Saskatchewan Formulary and those approved under Exception Drug Status. Residents must apply for coverage under this program.

Eligible seniors already receiving other Drug Plan coverage that provides prescriptions at less than the maximum will continue to pay the lower amount.

9. Children’s Drug Plan

The Children’s Drug Plan is available to all Saskatchewan children 14 and under. The Children’s Drug Plan will ensure families pay only $20 per prescription for eligible children for drugs listed on the Saskatchewan Formulary and those approved under Exception Drug Status. No application is required for the Children’s Drug Plan, as children 14 and under are automatically eligible for coverage.

Children already receiving other Drug Plan coverage that provides prescriptions for less than the maximum will continue to pay the lower amount.

10. Other Other includes Special Fees, Standard Beneficiaries and Special Support (100% co-pay).

Special Fees – Pharmacies are reimbursed when a pharmacist prescribes an eligible prescription medication according to the “Guidelines for Minor Ailment Prescribing”.

Standard Beneficiaries – Beneficiaries who do not apply for, or are not eligible for, Drug Plan coverage.

Special Support (100% co-pay) – eligible Saskatchewan residents who apply for special support where the family co-payment for each covered prescription is set at 100% based on the relation between family income and eligible drug cost.

Drug Plan

10 Drug Plan 10

2014-15 Utilization Trends

Table 2 Total Beneficiary and Drug Plan Payments

April 2014 - March 2015

DiscreteBeneficiaries 1

ActualBeneficiaries 2

Number ofPrescriptions

Total ApprovedPrescription Cost

Total DrugPlan Payment

2005-06 622,498 192,278 9,364,871 $375,304,926 $181,288,493

2006-07 615,422 198,633 9,626,629 $402,322,418 $198,843,985

2007-08 626,875 248,558 10,123,194 $435,191,159 $245,366,836

2008-09 631,941 283,013 10,482,967 $470,209,636 $268,047,354

2009-10 645,615 300,476 10,858,514 $510,324,389 $289,720,147

2010-11 659,121 307,720 11,256,610 $525,812,379 $297,920,254

2011-12 665,815 342,788 11,652,370 $524,879,507 $296,599,561

2012-13 681,423 342,718 11,894,462 $513,132,824 $278,583,073

2013-14 697,634 361,473 12,259,870 $537,965,286 $291,596,186

2014-15 711,643 378,057 12,649,817 $560,869,845 $306,973,972

2 Actual Beneficiaries are the number of total beneficiaries who received part or all of their drug cost paid by the Drug Plan. Note: 2011-12 Actual Beneficiaries increased by 11.4% due to expanded prescribing authority for Saskatchewan Pharmacists (see page 17).

1 Discrete Beneficiaries are the number of beneficiaries who received a prescription. This includes beneficiaries who do not apply for, or are not eligible for, Drug Plan coverage. Discrete beneficiaries are counted once within each fiscal year.

From 2013-14 to 2014-15: • More beneficiaries are receiving a benefit under the Drug Plan. The number of discrete

beneficiaries increased by 2.0% and the number of actual beneficiaries increased by 4.6%.

• The number of prescriptions increased by 3.2%, total approved prescription cost increased by 4.3% and total Drug Plan payment increased by 5.3%. The total approved prescription cost and the Drug Plan share of the prescription cost is increasing at a higher percentage than the number of prescriptions due to an increase in the utilization of higher cost drugs.

Drug Plan

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Table 3 Distribution of Prescription Drug Plan Costs


Approved Prescription Costs (all programs combined) ($000s)

Acquisition Cost ............................................................................. 394,555

Mark-up ........................................................................….................................. 32,551

Dispensing Fee ................................................................................................... 132,359

Compounding Portion of Mark-up ......................................................................... 1,405

560,870

Less: Consumer Payments ................................................................................. (253,896)

306,974

Third Party payments/manual adjustments 2 ........................................................... (9,256)

297,718

3 MIDAS is a central financial system.

Net Payments by MIDAS System 3

Total Approved Prescription Cost

Total Prescription Drug Plan Payments 1

2 Third Party payments/manual adjustments include refunds to vote, year-end adjustments made in accordance with accounting policies and payments outside the online system such as payments to the RHA's.

1 Drug Plan payments refer to formulary drugs and exception status drugs.

Table 4 (on page 12) highlights three factors that contribute to the change in growth: number of prescriptions per beneficiary; average prescription cost; and cost of prescriptions per beneficiary.

The total average number of prescriptions per discrete beneficiary increased by 1.1%, the total average prescription cost increased by 1.0%, and the total cost of prescriptions per discrete beneficiary increased by 2.2% for all beneficiaries.

The cost of prescriptions per discrete beneficiary increased for all age groups. The range of increases, based on age, was 7.1% for 0 to 4 year olds to 0.6% for 65 to 74 year olds.

Drug Plan

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Table 4 Prescription Drug Utilization Trend by Age of Discrete Beneficiary


Age of Beneficiary 2010-11 2011-12 2012-13 2013-14 2014-15% increase (decrease)

13-14 to 14-15Average Number of Prescriptions Per Discrete Beneficiary

3.4 3.2 3.4 3.4 3.4 0.0%4.1 4.1 4.1 4.1 4.1 0.0%6.0 6.2 6.3 6.5 6.7 3.1%7.5 7.7 7.7 7.8 7.9 1.3%

10.3 10.5 10.6 10.7 11.0 2.8%15.2 15.6 15.7 16.0 16.4 2.5%22.5 22.7 22.7 22.8 23.1 1.3%32.7 32.9 32.5 32.7 32.8 0.3%41.1 41.9 41.7 42.3 42.8 1.2%46.3 47.0 47.3 48.1 48.4 0.6%

Total 17.1 17.5 17.5 17.6 17.8 1.1%

Average Prescription Cost 1

$24.87 $27.68 $28.66 $29.04 $30.52 5.1%$51.96 $54.16 $54.06 $55.02 $55.24 0.4%$45.74 $47.52 $48.16 $50.96 $52.38 2.8%$50.68 $52.06 $51.05 $53.17 $55.28 4.0%$55.18 $54.91 $54.00 $55.78 $56.79 1.8%$53.14 $51.31 $50.25 $51.40 $51.92 1.0%$49.14 $46.92 $44.92 $45.48 $45.73 0.5%$46.66 $44.06 $41.22 $41.52 $41.68 0.4%$42.32 $39.61 $36.90 $36.93 $36.82 (0.3%)$36.27 $34.23 $31.69 $31.71 $31.85 0.4%

Total $46.71 $45.04 $43.14 $43.88 $44.34 1.0%

Total Cost of Prescriptions Per Discrete Beneficiary$83.85 $89.14 $97.01 $98.06 $104.98 7.1%

$213.14 $224.06 $221.54 $225.35 $228.52 1.4%$275.84 $294.16 $304.54 $329.48 $350.31 6.3%$379.86 $398.37 $394.31 $414.05 $436.33 5.4%$566.15 $576.86 $572.75 $596.49 $623.69 4.6%$807.24 $800.34 $790.39 $824.80 $849.66 3.0%

$1,106.45 $1,066.48 $1,018.89 $1,038.53 $1,055.34 1.6%$1,525.92 $1,450.33 $1,340.27 $1,359.08 $1,367.71 0.6%$1,739.05 $1,657.63 $1,538.65 $1,561.41 $1,574.46 0.8%$1,678.19 $1,608.58 $1,498.49 $1,524.24 $1,542.24 1.2%

Total $797.75 $788.33 $753.03 $771.13 $788.13 2.2%

1 Includes Drug Acquisition Cost, mark-up and dispensing fees paid to pharmacies.

85 and over

35 - 4445 - 5455 - 6465 - 7475 - 84

65 - 74

85 and over

15 - 245 - 14

25 - 34

55 - 64

25 - 34

5 - 14

75 - 84

75 - 84

0 - 4

35 - 4445 - 54

15 - 24

0 - 4

85 and over

65 - 74

0 - 45 - 14

15 - 2425 - 34

45 - 5435 - 44

55 - 64

Drug Plan

13 Drug Plan 13

2014-15 Utilization by Families The average total prescription cost for families in 2014-15 was $1,176.67. The average family share on total prescription costs is $532.66 (45.3%) and the average Drug Plan share is $644.01 (54.7%).

Table 5 Prescription Cost to Families April 2014 - March 2015

# ofFamilyUnits 1

# ofPrescriptions 2

DrugMaterialCost 3

Total ApprovedPrescription

Cost 4

Net Family /Insurance

Payments 5

TotalDrug PlanPayment 6

$ Nil 22,094 654,854 $25,430,753 $31,913,914 $0 $31,913,914$ 00.01 - 100.00 119,765 588,970 $19,166,473 $25,390,750 $5,441,080 $19,949,670$ 100.01 - 200.00 56,416 536,974 $15,306,593 $21,046,296 $8,278,958 $12,767,338$ 200.01 - 300.00 46,185 578,290 $17,109,595 $23,235,434 $11,470,047 $11,765,388$ 300.01 - 400.00 34,934 618,941 $19,262,604 $25,790,928 $12,167,429 $13,623,498$ 400.01 - 500.00 30,063 720,820 $21,006,283 $28,614,674 $13,494,556 $15,120,118$ 500.01 - 600.00 25,452 816,086 $22,479,095 $31,067,931 $13,967,199 $17,100,731$ 600.01 - 700.00 21,267 810,303 $22,356,877 $30,901,082 $13,798,213 $17,102,869$ 700.01 - 800.00 17,210 725,176 $20,154,108 $27,781,071 $12,885,219 $14,895,852$ 800.01 - 900.00 14,501 682,388 $19,126,874 $26,319,540 $12,313,967 $14,005,573$ 900.01 - 1000.00 12,017 611,282 $16,949,429 $23,361,030 $11,400,483 $11,960,548$ 1000.01 - 1250.00 23,010 1,320,177 $37,402,974 $51,224,150 $25,706,854 $25,517,295$ 1250.01 - 1500.00 15,702 1,018,230 $30,393,953 $41,057,828 $21,472,809 $19,585,020$ 1500.01 - 1750.00 10,553 750,963 $23,242,864 $31,113,697 $17,064,182 $14,049,514$ 1750.01 - 2000.00 7,304 545,465 $19,169,149 $24,876,093 $13,649,141 $11,226,951$ 2000.01 - 2250.00 5,132 402,663 $14,883,450 $19,085,319 $10,867,724 $8,217,595$ 2250.01 - 2500.00 3,597 290,405 $11,985,454 $15,000,656 $8,519,030 $6,481,626$ 2500.01 - 3000.00 4,631 387,899 $18,607,570 $22,608,989 $12,625,465 $9,983,524$ 3000.01 - 3500.00 2,602 224,955 $13,173,249 $15,469,568 $8,382,616 $7,086,953$ 3500.01 - 4000.00 1,471 130,500 $9,380,310 $10,706,399 $5,486,036 $5,220,362$ 4000.01 - 4500.00 844 75,482 $7,395,972 $8,157,262 $3,575,413 $4,581,849$ 4500.01 - 5000.00 530 50,875 $4,922,540 $5,439,951 $2,507,956 $2,931,995$ 5000.01+ 1,244 103,638 $19,353,348 $20,410,329 $8,854,000 $11,556,330

Less than Zero 134 4,481 $251,433 $296,955 ($32,503) $329,458

Total 476,658 12,649,817 $428,510,951 $560,869,845 $253,895,873 $306,973,972

2 # of Prescriptions refers to Formulary and Exception Drug Status drugs. This total includes Special Fees, Diagnostic Agents and Diabetic Supplies.3 Drug Material Cost includes Total Acquisition Cost + Mark-up and Compound Fee, if applicable, less Discount, if applicable.4 Total Approved Prescription Cost is the total approved amount of the Drug Material Cost, as well as the approved pharmacy dispensing fee.5 Net Family / Insurance Payments is the total cost paid by families and/or their insurance plans towards the total approved cost of the prescriptions. In some cases, the value of this field is negative due to adjustments and reversals of payments made in the previous time period.6 Total Drug Plan Payment is the total of the Drug Material Cost and Dispensing fee; less portion paid by families and their insurance plans.

Total Costto

Family Unit

1 A Family Unit includes all beneficiaries registered under one family number through eHealth Saskatchewan, Health Registries. Beneficiaries may belong to more than one Family Unit within a fiscal year. In this table beneficiaries are included under their most recent family number in the time period.

Drug Plan

14 Drug Plan 14

The majority of families (83.9%) have drug costs less than $1,000.01 and the Ministry of Health pays 61.0% of their total approved prescription cost. Only 0.3% of families have drug costs greater than $5,000.01 and the Ministry of Health pays 56.6% of their total approved prescription cost.

Chart 1 Prescription Cost to Families as a % of Total Approved Prescription Cost

61.0% 47.5% 43.5% 47.0% 55.3% 56.6% 54.7%

39.0% 52.5% 56.5% 53.0% 44.7% 43.4% 45.3%

83.9%

11.9%

2.8% 0.9% 0.3% 0.3%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

$0.00 -1,000.00

$1,000.01 -2,000.00

$2,000.01 -3,000.00

$3,000.01 -4,000.00

$4,000.01 -5,000.00

$5000.01+ Total Cost

% o

f Tot

al A

ppro

ved

Pres

crip

tion

Cos

t

Cost to Family Units

Net Family / Insurance PaymentsDrug Plan Payment% of Family Units


Drug Plan

15 Drug Plan 15

Objective 3 – Reduce the cost of drug materials

Better Value To help ensure the viability of the Drug Plan, and to be better able to provide coverage for new drugs through the Saskatchewan Formulary, the Drug Plan has the following “better value” strategies in place:

• Low Cost Alternative Policy Interchangeable products are different brands of the same drug with the same strength and dosage form that are equivalent in therapeutic effectiveness and quality. In the case where more than one interchangeable product is available, the Drug Plan reimbursement is calculated on the price of the lowest cost interchangeable generic drug.

• Product Listing Agreements (PLA) The Drug Plan enters into product listing agreements with drug manufacturers. These types of agreements result in better value for public funds spent on drugs and assist in managing the financial risk associated with drugs listed on the Saskatchewan Formulary. The ensuing cost savings help to offset Drug Plan expenditures and/or are available to provide additional benefits.

• Pan-Canadian Pharmaceutical Alliance Initiative (Brand Drugs) This initiative capitalizes on the combined purchasing power of provinces/territories to obtain increased value for money, increase access to drug products through public programs and align drug prices across participating jurisdictions. Price negotiations and product listing agreements have allowed Saskatchewan to manage formulary listings.

• Pan-Canadian Pharmaceutical Alliance Generic Price Initiative

Canadian provinces and territories (PTs) continue to secure better prices for generic drugs. Between April 1, 2013 and March 31, 2015, the prices of ten of the most common generic drugs were lowered to 18% of the equivalent brand name drug in participating jurisdictions as a result of the Pan-Canadian Pharmaceutical Alliance Generic Price Initiative.

• Standing Offer Contracts (SOC) The Ministry tenders several high volume drugs in certain interchangeable groups to obtain the lowest possible price. An accepted tender, called a standing offer contract, requires the manufacturer to guarantee delivery of the specific drug to Saskatchewan pharmacies through approved distributors at the contracted price. In return, the manufacturer's product is used almost exclusively.

• Maximum Allowable Cost Policy (MAC) Promotes the use of lower cost drugs by limiting the maximum price the Drug Plan pays to the price of the most cost-effective drug within a group of similar drugs that treat the same condition.

Drug Plan

16 Drug Plan 16

Objective 4 – Encourage the rational and appropriate use of prescription drugs

Better Use / Better Care

Drugs are one of the fastest growing categories of health care spending, yet evidence shows that pharmaceuticals are not always prescribed or used effectively or appropriately.

• The Drug Advisory Committee of Saskatchewan (DACS) The Drug Plan has established the Drug Advisory Committee of Saskatchewan and relies on the expertise of the DACS to provide independent, specialized advice on drug-related matters. The committee provides advice concerning which drug products should be considered for public funding based on evidence-based reviews of the products.

• The Common Drug Review and the pan-Canadian Oncology Drug Review The Canadian Agency for Drugs and Technologies in Health’s (CADTH’s) Common Drug Review (CDR) and pan-Canadian Oncology Drug Review (pCODR) processes provide the Drug Plan with objective, rigorous clinical and cost-effective reviews of new drugs.

• Exception Drug Status (EDS) Exception Drug Status drugs are products that are listed in the Saskatchewan Formulary with specific medical criteria or conditions for use. Generally, drug products are recommended for EDS status when there are specific circumstances where use is particularly beneficial; where the drug has potential for the development of widespread inappropriate use; where the drug is more expensive than listed alternatives and offers an advantage in only a limited number of indications; etc. EDS listing can encourage more appropriate prescribing.

• Partnerships with the University of Saskatchewan’s College of Pharmacy and Nutrition

The Drug Plan is a partner in the University of Saskatchewan’s Joint Initiative on Adherence, which encourages appropriate use of medications in the province through educational and research initiatives.

The Drug Plan provides funding for the Saskatchewan Drug Utilization and Outcomes Research Team (SDUORT). The SDUORT initiative enables the provision of focused research in a timely manner to inform Drug Plan policies and to aid in evidenced based decision-making.

• Prescription Review Program The Drug Plan provides funding for the Prescription Review Program, which is a program operated by the College of Physicians and Surgeons on behalf of program partners to reduce the risk of abuse, misuse and diversion of certain drugs (primarily narcotics, sedative-type hypnotics and stimulants). In recent years, the Ministry of Health has assisted in increasing the analytic and educational capacity of the program to help encourage appropriate use of drugs monitored by the program.

Drug Plan

17 Drug Plan 17

• RxFiles Academic Detailing Program

The Drug Plan provides an annual grant to the Saskatoon Regional Health Authority to operate the provincial RxFiles Program. Academic detailing is a form of education outreach, which consists of focused one-on-one interactions between a drug professional, and physicians and other health professionals in the community. Academic detailing programs are based on scientific and objective analysis and are aimed at achieving optimum levels of efficacy, safety and economy in drug therapy.

• RxFiles Long Term Care Project The Drug Plan provided additional funding to RxFiles to focus on optimizing drug use in residents of long term care facilities. The project will engage a variety of health professional providers in pursuing an integrated approach toward the implementation of “best practice” approaches to drug therapy in this population group.

Better Teams

• Electronic Health Record/Electronic Medical Record (EHR/EMR) The EHR is a provincial initiative that provides a centralized source of information about a patient’s lab tests, radiology results, drug information, and other important health information. The EHR improves the flow of communication across care settings to give clinicians and patients the right information.

The Ministry of Health, in partnership with the Saskatchewan Medical Association, implemented EMRs. The EMR is software used in physician’s clinics to automate office functions to store all patient information electronically. EMRs have the capacity to download patient information from the EHR.

The goal of an EHR combined with an EMR is to have the right information in the right hands at the right time to make timely health decisions.

• Pharmaceutical Information Program (PIP) The Ministry’s Pharmaceutical Information Program enhances patient safety by helping authorized health care users select the best medication, avoid drug interactions, identify inappropriate drug dosages, avoid duplication of therapy and identify possible prescription drug abuse. It facilitates the team approach to patient care by sharing information across the continuum of care.

• Pharmacist Prescribing

Expanded prescribing authority for Saskatchewan pharmacists recognizes the ability of pharmacists to improve health care delivery in the province, working in collaboration with physicians and other health care professionals. It also provides an increased emphasis on the importance of pharmacists’ role in interdisciplinary collaboration and team-based care.

Saskatchewan pays a fee to pharmacists to assess their patients’ needs under prescriptive authority. The assessment may result in an extension or adaptation of a patient’s medication prescription in certain situations. The assessment is available at no cost to any provincial resident.

Drug Plan

18 Drug Plan 18

Pharmacies are also paid a fee when a pharmacist prescribes an eligible prescription medication according to the “Guidelines for Minor Ailment Prescribing”.

On May 1, 2014, prescribing authority was expanded to include the treatment of eight additional minor ailments.

• Saskatchewan Medication Assessment Program (SMAP) The SMAP is a standardized approach for pharmacists to assess a patient’s medication therapy and communicate with their physician and/or health care provider(s) to resolve identified issues. The purpose of the SMAP is to support seniors, who meet specific criteria, in continuing to live in the community by ensuring they are able to adhere to safe and effective medication therapy.


Supplementary Health and Family Health Benefits 19

Program Objective To provide benefits for non-insured health services to people nominated for coverage by the Ministries of Social Services, Justice and Advanced Education.

Highlights for 2014-15 • The average number of people registered on programs in 2014-15 with eligibility for

Supplementary Health benefits was 46,211.

• The average number of people eligible for Family Health Benefits was 47,652. This includes both children who are eligible for all benefits and adults who are eligible for limited benefits.

• The average number of seniors eligible for the Seniors’ Income Plan was 12,078.

Supporting Information Table 6 Supplementary Health Program and Family Health Benefits Payments 1 April 2014 - March 2015

Services

SaskatchewanAssistance

PlanGovernment

Wards

ProvincialCorrectionalInstitutions

Seniors'Income

PlanRecipientsin Special

Care Homes

FamilyHealth

Benefits

OtherBeneficiary

Categories 2 Totals

Over-the-Counter Drugs $1,958,168 $213,642 $193,000 $191,156 $71,586 $41,074 $2,668,625

Medical Supplies andAppliances $767,827 $70,624 $6,817 $14,822 $77,254 $25,291 $962,634

Northern MedicalTransportation (Air) $1,368,690 $12,249 $5,341 $0 $39,374 $31,998 $1,457,652

Northern MedicalTransportation (Ground) $2,206,950 $23,707 $593 $0 $55,506 $41,308 $2,328,064

Medical Services $445,722 $5,433 $2,935 $0 $2,328 $768 $457,186

Dental Services $7,538,831 $835,433 $519,613 $16,717 $2,633,017 $86,353 $11,629,964

Optical Services $1,228,879 $140,538 $118,196 $4,027 $443,017 $301,474 $2,236,131

Ambulance Services $2,494,383 $134,729 $43,669 $28,360 $151,050 $41,650 $2,893,842

Chiropractic Services $367,277 $9,320 $1,083 $1,542 $537,541 $248,695 $1,165,457Total:Supplementary HealthandFamily Health Benefits

$18,376,728 $1,445,673 $891,247 $256,624 $4,010,673 $818,611 $25,799,556

1 Some items may not balance due to rounding2 Other Beneficiary Categories include: Assisted Adoption, Job Training and Seniors' Income Plan



Table 7 Historical Costs of Supplementary Health Program and Family Health Benefits Payments 1

April 2014 - March 2015Services 2010-11 2011-12 2012-13 2013-14 2014-15

Over-the-Counter Drugs $2,375,198 $2,260,677 $2,383,764 $2,552,323 $2,668,625

Medical Suppliesand Appliances $1,038,142 $1,001,732 $1,196,609 $1,084,229 $962,634

Northern MedicalTransportation (Air) $646,250 $1,100,111 $1,040,314 $1,369,834 $1,457,652

Northern MedicalTransportation (Ground) $2,556,635 $2,617,293 $2,385,479 $2,298,214 $2,328,064

Medical Services $355,071 $487,976 $454,731 $464,509 $457,186

Dental Services $9,930,885 $10,614,304 $11,328,498 $10,887,664 $11,629,964

Optical Services $2,130,691 $2,130,689 $2,340,648 $2,093,450 $2,236,131

Ambulance Services $2,444,416 $2,674,294 $2,980,613 $2,732,912 $2,893,842

Chiropractic Services $1,504,874 $1,414,179 $1,325,162 $1,208,517 $1,165,457

Total: Supplementary Health and Family Health Benefits

$22,982,162 $24,301,256 $25,435,816 $24,691,652 $25,799,556

Note: Includes Seniors' Income Plan Payments1 Some items may not balance due to rounding

1. Over-the-Counter Drugs Supplementary Health provides certain physician prescribed over-the-counter drugs at a reduced charge, to a maximum of $2.00, for Plan One beneficiaries and without charge for Plan Two and Three beneficiaries. Formulary and over-the-counter drug benefits for the different levels of Supplementary Health coverage are outlined on page 7.

2. Medical Supplies and Appliances All Supplementary Health beneficiaries and children with Family Health Benefits coverage are covered for a wide range of medical supplies, appliances and devices when prescribed by a physician.



3. Northern Medical Transportation Program Benefits of the Northern Medical Transportation Program include:

• emergency medical evacuation from locations in the north for all Saskatchewan residents; and

• non-emergency medical transportation for Supplementary Health beneficiaries and children with Family Health Benefits coverage residing in northern Saskatchewan to access medical appointments outside their community.

4. Medical Services Supplementary Health and Family Health Benefits covers the cost of non-insured third party reports requested by the Ministry of Social Services. These reports are used to determine the level of required nursing care, rehabilitation potential and employability.

5. Dental Services Coverage includes basic preventive, restorative, exodontic, and prosthetic dental services for all Supplementary Health beneficiaries and children with Family Health Benefits coverage.

6. Optical Services Eyeglasses are covered for all Supplementary Health beneficiaries and children with Family Health Benefits coverage, whether provided by an optometrist or ophthalmic dispensary. There is an upper limit on the amount paid for eyeglass frames.

The cost of eye examinations is covered for Supplementary Health beneficiaries 18 years of age and over, Seniors’ Income Plan recipients and adults with Family Health Benefits coverage. Eye examinations for children are covered on a universal basis by the Medical Services Branch.

7. Ambulance Services Emergency medical transportation by road ambulance is a benefit for all Supplementary Health beneficiaries and children with Family Health Benefits coverage.

8. Chiropractic Services A maximum of 12 chiropractic services per year are covered for Supplementary Health, Family Health Benefits and Seniors’ Income Plan beneficiaries.



Chart 2 Supplementary Health Program and Family Health Benefits Payments by Program Area

Over-the-Counter Drugs10%

Medical Suppliesand Appliances

4%

Northern MedicalTransportation (Air)

6%

Northern MedicalTransportation

(Ground)9%

Medical Services2%

Dental Services45%

Optical Services9%

Ambulance Services11%

Chiropractic Services

4%

AApril 2014 - March 2015


Saskatchewan Aids to Independent Living (SAIL) 23

Program Objective SAIL was established to provide benefits that assist people with physical disabilities achieve a more active and independent lifestyle and to assist people in the management of certain chronic health conditions. The program provides a basic level of coverage for disability related equipment, devices, products and supplies in order to achieve the best possible care, experience and health for beneficiaries.

Highlights for 2014-15 • The SAIL program provided benefits in the amount of $39.8 million.

• The following programs account for 79.5% of total SAIL payments:

Home Oxygen Program (32.3%);

Special Needs Equipment Program (17.3%);

Orthopaedic Services (15.6%); and

Paraplegia Program (14.3%)



Supporting Information Table 8 Caseloads and SAIL Payments


Caseload Expenditures Caseload ExpendituresUniversal Programs

Orthopaedic Services 8,201 $5,362,654 8,988 $6,220,928

Special Needs Equipment n.a. $5,583,422 n.a $6,888,981

Home Oxygen 4,532 $12,856,101 4,695 $12,877,349

Respiratory Equipment n.a. $1,595,975 n.a $1,553,513

Therapeutic Nutritional Products 135 $219,954 171 $336,950

Children’s Enteral Feeding Pump 256 $417,914 224 $438,460

Special Benefit Programs

Paraplegia Program 1,837 $6,254,010 1,834 $5,702,942

Cystic Fibrosis 136 $179,778 135 $175,940

Chronic End-Stage Renal Disease 1,163 $3,204,628 1,140 $3,033,183

Ostomy Program 2,864 $1,851,212 3,033 $1,616,766

Haemophilia 1 16 $21,837 22 $30,852

Aids to the Blind n.a. $432,826 n.a $437,393

Saskatchewan Insulin Pump 2 221 $415,800 253 $535,500Total $38,396,110 $39,848,757Note: n.a. is not available as volumes are captured as the number of equipment units issued (see page 27).1 Caseload data source changed September 5, 2014. Reports changed from clients receiving a benefit to registered clients.

2013-14

2 Includes cost of pumps only. Supply costs are included in the Drug Plan.

2014-15

Universal Benefit Programs

Orthopaedic Services (Prosthetics and Orthotics Program and Compression Garment Program) Prosthetic Appliances – Artificial limbs and accessories are supplied, fitted, adjusted and repaired.

Orthotic Appliances – Higher-cost back braces and upper and lower extremity orthoses, braces and splints are supplied, fitted, adjusted, and repaired. High-cost knee braces are cost shared with clients.

The above services are supplied by the Orthotics and Prosthetics Departments of the Wascana Rehabilitation Centre in Regina and the Saskatchewan Abilities Council in Saskatoon. Private service providers may bill for the cost of materials only.

Specialized and Adaptive Seating – Adaptations to wheelchairs to ensure safety and proper fit are supplied and adjusted.



Compression/Burn Garments – Moderate to high pressure compression garments for the management of serious conditions are provided.

Adaptive and Rehabilitation Equipment – Limited equipment for in-home rehabilitation and therapy for children is available.

Special Needs Equipment Program Mobility and environmental aids are loaned, maintained and repaired. Equipment available for loan includes wheelchairs, walkers, specialized crutches, hospital beds, transfer assists, bathtub lifts and commodes.

The Special Needs Equipment Program is operated by the Saskatchewan Abilities Council under contract with SAIL. Equipment depots are located in Prince Albert, Regina, Saskatoon, Swift Current and Yorkton.

Home Oxygen Program Home oxygen and related equipment are benefits under SAIL for Saskatchewan residents who meet medical criteria or who meet the criteria for end stage palliative care. The oxygen systems are supplied by private medical oxygen supply companies under contract with SAIL.

Respiratory Equipment Program Home respiratory equipment such as ventilators, continuous positive airway pressure (CPAP) and bi-level flow generators, portable and stationary suctioning equipment, and tracheostomy humidification compressors are loaned, maintained and repaired. SAIL provides financial assistance towards the purchase of aerosol therapy compressors (nebulizers) for eligible beneficiaries, who are responsible for maintenance and repairs. The program covers the cost of consumable tracheostomy and laryngectomy supplies. Coverage is also provided for Spirometers which are required following lung transplants.

Therapeutic Nutritional Products Program The program provides assistance towards the cost of specialized nutritional products for people with complex medical conditions who rely on those products as their primary nutritional source. The program assists with the incremental cost associated with using these products in place of a regular diet. Program benefits are cost shared between clients and the Ministry of Health, with the client’s portion varying based on a number of factors, including family income and drug costs.

Children’s Enteral Feeding Pump Program Feeding pumps are provided by SAIL on a loan basis to children who require nasogastric or gastrostomy pump feeding. Select consumable supplies associated with pump feeding are also a benefit.



Special Benefit Programs In addition to universal SAIL program benefits, extended coverage is provided to beneficiaries with certain chronic health conditions.

Paraplegia Program Benefits are available for individuals who have paralysis of all or most of the lower limbs and trunk due to a lesion or disease affecting the spinal cord. Drugs listed in the Saskatchewan Formulary, drugs approved under Exception Drug Status and select physician prescribed over the counter drugs are a benefit. Bladder and bowel incontinence products, wound management and other medical supplies for chronic conditions are also provided. Limited specialized rehabilitation equipment is purchased for clients. Grants are provided for purchases related to home access and vehicle modifications.

Cystic Fibrosis Program Drugs listed in the Saskatchewan Formulary, drugs approved under Exception Drug Status and select physician prescribed over the counter drugs are benefits of the program. In addition, certain nutritional supplements are covered for individuals with cystic fibrosis.

Chronic End-Stage Renal Disease Program Drugs listed in the Saskatchewan Formulary, drugs approved under Exception Drug Status and select physician prescribed over the counter drugs are a benefit for persons with end-stage renal disease requiring dialysis and kidney transplant recipients.

Ostomy Program SAIL covers fifty percent of the cost of certain ostomy supplies, such as appliances, adhesives and adhesive removers, for individuals with a urinary or bowel diversion.

Haemophilia Program SAIL covers the cost of medical supplies associated with home infusion for the treatment of haemophilia.

Aids to the Blind Program The program provides or subsidizes the cost of select low vision aids, assistive devices and vision rehabilitation services to individuals living with vision loss. Aids and devices include braillers, white canes, talking calculators, phones, labellers, scales, watches, magnifiers, digital playback units, multifunctional electronic devices and low vision eyewear. Equipment and low vision services are provided by the Canadian National Institute for the Blind (CNIB) under contract with SAIL.



Saskatchewan Insulin Pump Program The program covers the cost of an insulin pump for individuals 25 years of age or younger who have Type 1 diabetes and meet medical criteria. Financial assistance is also available for insulin pump supplies for qualifying individuals. Pump supplies are processed as benefits through the Drug Plan system and are subject to family deductibles and/or co-payments.

Table 9 Units of Equipment Issued 1

April 2014 - March 2015Program 2010-11 2011-12 2012-13 2013-14 2014-15

Special Needs Equipment 28,556 30,438 31,053 35,236 35,243

Respiratory Equipment 1,756 1,947 2,155 2,102 2,351

Aids to the Blind 1,617 1,492 1,208 1,108 1,277

1 A unit of equipment is a discrete loan item (e.g. wheelchair, walker, sask-a-pole, cushion, ventilator, CPAP machine, suction machine, talking book player, white cane)



Chart 3 SAIL Payments by Program Area

Orthopaedic Services15.6%

Special Needs Equipment

17.3%

Home Oxygen32.3%

Respiratory Equipment

3.9%

Therapeutic Nutritional Products

0.9%

Children’s Enteral Feeding Pump

1.1%

Paraplegia Program14.3%

Cystic Fibrosis0.4%

Chronic End-Stage Renal Disease

7.6%

Ostomy Program4.1%

Haemophilia0.1%

Aids to the Blind1.1%

Saskatchewan Insulin Pump

1.3%


Appendices

Appendices 29

Appendix 1 Drug Plan History Since its inception, over 40 years ago, the Saskatchewan Drug Plan has provided a high quality of service to the people of Saskatchewan in the delivery of a prescription drug coverage program.

1974 May 10 – Enabling legislation for the Drug Plan, The Prescription Drugs Act, was assented to on May 10.

1975 September 1 – The Drug Plan began providing benefits. A review process was established to recommend which drugs should be covered under the Drug Plan. The actual acquisition cost plus a dispensing fee comprised the total cost of a Formulary drug.

1987

July 1 – A mark-up on the cost of a drug was added. Mark-up was calculated on the acquisition cost before the dispensing fee was added.

July 1 – The Drug Plan was changed from a fixed co-payment coverage program to a basic deductible* and percentage co-payment program. Those residents entitled to special health benefits were exempted.

July 1 – Palliative Care coverage was introduced.

1989

January 1 – Point of Sale terminals were installed for each pharmacy to submit claims information electronically for adjudication online in real time.

January 1 – Eligible drugs purchased anywhere in Canada by all eligible Saskatchewan residents became a benefit.

1991

March 8 – Beneficiaries in Special Care Homes, who previously paid a maximum $3.95 for each prescription, became part of the deductible plan.

July 1 – The coverage policy for drugs in an interchangeable group was changed. The actual acquisition cost of every product in the interchangeable group was now covered only up to lowest listed price in the group.

1997

October – A Managed Care Fee was implemented for community-based pharmacies that provide monitoring, supervision and other required activities to administer the Methadone Program.

December – Task Force on High Cost Drugs was appointed to determine appropriate improvements to the way government evaluates new pharmaceuticals.

1999 August – A Trial Prescription Program was implemented.

2000

The Prescription Drug Plan, in partnership with the Saskatoon Health District, implemented the RxFiles Academic Detailing Program as an educational program aimed at assisting physicians in selecting the most appropriate and cost-effective drug therapy for their patients. This program was an extension of the Community Drug Utilization Program, established in 1997 as a pilot project in the district.

2002 July – The Income-based Program was implemented, replacing the semi-annual deductible.

2004

July 1 – The Maximum Allowable Cost policy was implemented with one group of drugs, the Proton Pump Inhibitors, using the price of the most cost effective drugs as a guide to set the maximum price the Drug Plan would cover for other similar drugs used to treat the same condition.

September 15 – Following a legislative change, the Drug Plan began collecting information on all prescriptions dispensed from community pharmacies, including those that were not benefits of the Drug Plan.

Appendices

Appendices 30

2005 October 24 – The Pharmaceutical Information Program (PIP) Medication Profile Viewer (MPV) phase began with a pre-production rollout to selected sites to validate production processes.

2006

March – Full production rollout of the PIP Medication Profile Viewer to pharmacies, emergency rooms, physician clinics, long-term care and home facilities as they were equipped and trained. The MPV provides authorized health care professionals with confidential shared access to patient medication histories to help improve drug therapy for Saskatchewan residents.

July 1 – The Drug Plan computer system was changed to allow for indefinite Exception Drug Status (EDS) coverage on a large number of EDS medications that are used to treat chronic conditions that previously could only be approved for three years at a time.

October 3 – The Executive Director of the Drug Plan and Extended Benefits Branch was given a Delegation of Authority for Interchangeable Generic Drug Coverage, as per Ministry policy.

2007 July – The second phase of PIP e-prescribing began and became available for physicians and registered nurses/nurse practitioners to prescribe electronically.

2009 December 21 – The appointments to the newly created Drug Advisory Committee of Saskatchewan (DACS) were approved, which marked a significant change in the Saskatchewan drug review process.

2010

January 15 – Pharmacists were able to bill two new benefit services, the Medication Assessment and the Compliance Packaging, to the Drug Plan and Extended Benefits Branch for eligible community-based clients who require medication management through Home Care services.

March – Approximately 99% of pharmacies have access to PIP.

March – PIP Implementation is in its final phase, which is to integrate PIP with health provider computer systems.

March 31 – Project Development of PIP was completed. The Drug Plan and Extended Benefits Branch became the business owner of PIP for the Ministry of Health.

Fall – The initial pilot phase of PIP integration using a national electronic messaging standard (CeRx) was launched in 14 pharmacies across the province.

October 1 – Eligible clients for the Medication Assessment and Compliance Packaging fees was expanded to include individuals identified by regional outpatient mental health programs.

Appendices

Appendices 31

2011

March 4 – Pharmacists were able to bill Patient Assessment Fees for services provided under the expanded prescriptive authority for pharmacists. This expanded authority will provide Saskatchewan residents with easier access to their medications when they need them and will benefit residents through more efficient and accessible health care services.

April 1 – The first group of Standing Offer Contract (SOC) products expired. Products in these former SOC categories transitioned to 35% of the brand name price. The price requirement for first entry generic drug submissions received after April 1st became 40% of brand name.

May 1 – A select group (fewer than 20) of existing generic drugs transitioned to 45% of brand name.

June 1 – The price requirement for the remainder of existing generic drugs became 45% of brand name.

June 1 – Changes to the wholesale mark-up and cap were implemented. A wholesale mark-up of 6% will be included in the maximum allowable unit price for generic drugs. This is in lieu of the distribution fee previously paid by generic drug manufacturers to drug wholesalers, which resulted in a 0% wholesale mark-up on generic drugs. The 6% mark-up is non-rebatable to pharmacies except for a maximum 2% discount for prompt payment. The cap on wholesale mark-up increased from $40 to $50 per package.

October 1 – Products in the second group of SOCs expired and the price transitioned to 35% of brand name.

2012

February 1 – Reimbursement to pharmacies for minor ailment prescribing when an eligible prescription medication is prescribed by pharmacists according to the “Guidelines for Minor Ailment Prescribing”. These services are available at no cost to Saskatchewan residents with valid health coverage. Saskatchewan is the first province to pay an assessment fee to pharmacies for minor ailment prescribing.

April 2 – The price requirement for most existing generic drugs, and for first entry generic submissions, became 35% of brand name.

May 24 – The addition of four minor ailment conditions covered under minor ailment prescribing.

November 2 – Implementation of a new medication process allowing pharmacists to bill up to six months of prescriptions that meet specific criteria through the Drug Plan computer system, compared to three months previously.

2013

April 1 – as a result of the pan-Canadian Pharmaceutical Alliance Generic Price Initiative, Canadian provinces and territories reduced six high volume molecules to 18% of the equivalent brand name drug.

July 8 – Implementation of the Saskatchewan Medication Assessment Program (SMAP). The purpose of the SMAP is to support seniors in continuing to live in the community within their own home by ensuring they are able to adhere to safe and effective medication therapy.

2014

April 1 – Four additional high volume molecules were reduced to 18% of the equivalent brand name drug as part of the pan-Canadian Pharmaceutical Alliance Generic Price Initiative.

April 1 – Implementation of a new Generic Tiered Pricing Framework which sets generic product prices upon market entry, followed by a tiered price reduction as additional generic brands enter the market.

May 1 – The addition of eight minor ailment conditions covered under minor ailment prescribing.

2015 February 9 – Saskatchewan serves as the single point of entry for the pan-Canadian Pharmaceutical Alliance coordinated price tier confirmation process.

* Refers to History of Deductibles

Appendices

Appendices 32

Appendix 2 History of Deductibles

July 1, 1987

Annual deductible of $125 (regular family), then a co-payment of 20%.

Annual deductible of $75 (senior family), then a co-payment of 20%.

Annual deductible of $50 (single senior), then a co-payment of 20%.

March 8, 1991 Annual deductibles as above (1987), then a co-payment of 25%.

Residents of Special Care Homes became part of the deductible program.

May 19, 1992

Semi-annual deductible of $190 (regular family), then a co-payment of 35% to a $375 maximum, then 10% co-payment.

Single senior and senior family deductibles at 1987 level but became semi-annual, with a co-payment of 35% to a $375 maximum, then 10% co-payment.

March 19, 1993

Families became eligible for the Special Support program, where families and the Drug Plan shared the cost of prescriptions, if the cost for covered drugs exceeded 3.4% of the family income. The family co-payment for each covered prescription was set based on the relation between family income and eligible drug cost.

Family Income Plan recipients, Saskatchewan Income Plan recipients, and Guaranteed Income Supplement recipients in special care homes, had a semi-annual deductible of $100, then a co-payment of 35%.

All other Guaranteed Income Supplement recipients had a semi-annual deductible of $200, then a co-payment of 35%.

All other family units subject to a deductible and not approved for Special Support had a semi-annual deductible of $850, then a co-payment of 35%.

December 1, 1997 The $50,000 family income cap for the Special Support Program was removed.

August 1, 1998 The Family Health Benefits Program was introduced to replace the Family Income Plan. The program provided adults with a semi-annual deductible of $100, then a co-payment of 35%, and no charge for children.

July 1, 2002 The income-based program replaced the semi-annual deductible of $850 that began in 1993.

July 1, 2007 Saskatchewan residents 65 years and older automatically became covered under the Seniors’ Drug Plan that capped prescriptions at $15 for drugs listed under the Saskatchewan Formulary.

July 1, 2008

The amended Seniors’ Drug Plan took effect. It provides a $15 cap per prescription to those seniors eligible for the federal age credit.

The Children’s Drug Plan took effect, providing a $15 cap per prescription for children 14 and under.

March 21, 2012 The Seniors’ and Children’s Drug Plan payment cap per prescription increased to $20.

Appendices

Appendices 33

Appendix 3 Pharmacy Claims Processing Information relating to the process for submission of pharmacy claims, pharmacy reimbursements and prescription quantities can be found on the Formulary website http://formulary.drugplan.health.gov.sk.ca or the Ministry of Health website http://www.health.gov.sk.ca.

The following table provides a history of maximum dispensing fees and pharmacy mark-up fees according to agreement between the Ministry of Health and the pharmacy proprietors:

Dates Dispensing Fee Mark-Up

September 1, 2003 to November 30, 2005 $7.97 30% for drug cost up to $6.30;

15% for drug cost between $6.31 and $15.80;

10% for drug cost of $15.81 to $200.00, and

a maximum mark-up of $20.00 for drug cost over $200.00.

December 1, 2005 to September 30, 2006 $8.21

October 1, 2006 to September 30, 2007 $8.46

October 1, 2007 to July 31, 2009 $8.63

August 1, 2009 to July 31, 2010 $9.15

August 1, 2010 to April 30, 2011 $9.43

May 1, 2011 to March 31, 2012 $9.85

April 1, 2012 to April 30, 2013 $10.25

May 1, 2013 to March 31, 2014 $10.75

April 1, 2014 to March 31, 2015 $11.25

Note: The tiered mark-up and dispensing fee do not apply for diabetic supplies.

http://formulary.drugplan.health.gov.sk.ca/

http://www.health.gov.sk.ca/

Appendices

Appendices 34

Appendix 4 Supplementary Health and Family Health Benefits Program History

1966 April 1 – The Saskatchewan Assistance Plan was instituted. Several categories of beneficiaries under the Medical Services Division were combined into one program with the basis of need becoming the criteria to determine eligibility.

1968 September 1 – Coverage for refractions was moved to the Saskatchewan Medical Care Insurance.

1975 September 1 – Payment responsibility of formulary drugs and of prosthetic and orthotic appliances for Social Assistance beneficiaries was taken over by the Saskatchewan Prescription Drug Plan and by the Saskatchewan Aids to Independent Living respectively.

1981 July 1 – Program eligibility was expanded to include benefits for non-recipients of Social Assistance receiving level 2, 3, and 4 special care home or long-term hospital care where incomes are at or below the Saskatchewan Income Plan level.

1984 May 1 – Responsibility for emergency medical transportation costs by road ambulance and Saskatchewan Government air ambulance for Supplementary Health beneficiaries was transferred from the Department of Social Services.

1992

June 1 – Eye examinations were added to coverage for Supplementary Health beneficiaries over the age of 17, and for adults receiving the Family Income Plan and the Saskatchewan Income Plan supplements.

September 8 – Services of chiropractors became fully covered for Supplementary Health, Family Income Plan and Saskatchewan Income Plan beneficiaries.

1993 June 30 – Supplementary Health began providing dental coverage for children in families that received the Family Income Plan supplement.

1997 May 1 – The Ministry began providing all Supplementary Health benefits for children in Family Income Plan families.

1998 August 1 – The Ministry began providing Family Health Benefits for families who received the Saskatchewan Child Benefit and/or the Saskatchewan Employment Supplement. Family Income Plan recipients became part of Family Health Benefits.

2010 April 1 – The number of chiropractic treatments covered for Supplementary Health, Family Health Benefits and Seniors’ Income Plan recipients was capped at 12 per year.

2014 October 1 – Addition of visual field testing for Seniors’ Income Plan recipients.

Appendices

Appendices 35

Appendix 5 Saskatchewan Aids to Independent Living (SAIL) Program History

1975 April 1 – SAIL began providing benefits to eligible residents for prosthetic/orthotic devices.

August 1 – SAIL benefits expanded to provide equipment loans and equipment repairs for all residents of the province.

1976

April 1 – SAIL took over responsibility for: the Paraplegia Program, which covers the cost of incontinence products, medical supplies and select rehabilitation equipment recommended by the attending physician as well as providing grants for home and vehicle modifications; the Cystic Fibrosis Program, which provides drugs and nutritional supplements for certain beneficiaries; and the Chronic End Stage Renal Disease Program, which provides assistance with the cost of necessary medications for certain beneficiaries.

1979-80 The Ostomy and Home Haemophilia programs were added.

1984-85 Coverage expanded to include aids and services required by the blind residents in the province.

1987

June – The responsibility for the acquisition, distribution and repair of Special Needs Equipment (e.g. wheelchairs, patient lifts, etc.) was transferred to the Saskatchewan Abilities Council. SAIL continues to fund the full cost of the program.

August – Assumed responsibilities for the administration of the Home Oxygen Program from the Drug Plan.

September – responsibility for the acquisition, distribution and repair of equipment required by the blind was transferred to the Canadian National Institute for the Blind (CNIB). SAIL continues to provide funding to CNIB for delivery of these services.

1996-97 Benefits under the Home Oxygen Program were granted according to certain medical criteria.

2003-04 The Therapeutic Nutritional Products Program was added to assist with the incremental cost associated with using nutritional products in place of a regular diet.

2007 July – The Saskatchewan Children’s Insulin Pump Program was added to assist with the costs of insulin pumps and related supplies for children 17 years of age or younger who have Type 1 diabetes and meet specific medical criteria.

2011 July 1 – Responsibility for the policy and operation of the Phenylketonuria (PKU) Program transferred from the Population Health Branch to the Drug Plan and Extended Benefits Branch.

2012

January 1 – Low protein food was added as a benefit for clients registered on the PKU Program.

January 1 – The Saskatchewan Children’s Insulin Pump Program, previously for children 17 years of age or younger, was expanded to include individuals who are 25 years of age and under. The program was renamed the Saskatchewan Insulin Pump Program.

April 1 – Expansion of online billing for eligible ostomy products and supplies covered under the Ostomy Program.

September 25 – Implementation of online billing for nutritional supplements that are benefits under the Cystic Fibrosis Program.

Appendices

Appendices 36

2013

May 1 – The Special Needs Equipment Program replaced all manual hospital beds with electric hospital beds

October 1 – Night garments and gel sheets were added as new benefits to the Compression Garment Program and the criteria for arm sleeves was expanded to include lower compressions.

October 4 – Implementation of online billing for select medical supplies that are benefits under the Paraplegia Program

November 14 – Addition of a bariatric home access grant option under the Paraplegia Program.

2014

April 1 – Expansion of the Aids to the Blind Program benefit list to include new technology.

June 1 – Addition of craniofacial and palatal prostheses under the Prosthetics and Orthotics Program

July 7 – Addition of functional electrical stimulation (FES) devices for foot drop under the Prosthetics and Orthotics Program

September 10 – Addition of tracheostomy and laryngectomy supplies under the Respiratory Equipment Program

Ministry of Health Annual Report for 2014-15

Documents

Transcript of Ministry of Health Annual Report for 2014-15